Further fall in trade seen in March

China saw a continued decline in its exports in March and posted a double-digit fall in imports year-on-year, but a customs official said Thursday the dip was "temporary and short-term."

The country's exports amounted to $170.11 billion in March, down 6.6 percent from the same period last year, following a contraction of 18.1 percent in February, -according to data released Thursday by the General Administration of Customs (GAC).

Imports fell 11.3 percent year-on-year to $162.41 billion in March and the trade surplus stood at $7.71 billion, reversing a deficit of $22.98 billion in February.

The customs data also showed that exports in the first quarter fell 3.4 percent from a year earlier, while imports were up 1.6 percent, resulting in a trade surplus of $16.74 billion, down 59.7 percent year-on-year.

A Reuters poll had found market expectations of a rise of 4 percent in exports in March, a 2.4 percent rise in imports and a trade surplus of $900 million, according to a Reuters report on Thursday.

"China's export and import figures are still within a reasonable range, and I believe they will resume growth starting from May and see a trend of mild growth," Zheng Yuesheng, spokesman for the GAC, said at a press conference on Thursday.

Zheng said the fundamentals of exports and imports still indicate signs of growth.

"Export growth to major trading partners continues to improve, while low commodity prices in the global market dragged down import figures," Zheng said.

"Premier Li Keqiang commented on the downward pressure facing the economy this year at the ongoing Boao Forum for Asia conference," Tian Yun, a research fellow with the China Society of Macroeconomics at the National Development and Reform Commission (NDRC), told the Global Times Thursday.

Recent capital outflows and the weakening of the yuan against the US dollar have put pressure on exports and imports, Tian said.

The March data revealed the weakness of global demand as well as the lower competitiveness of China's export products, Tian said, noting that exports stand as a -measurement of industrial output efficiency.

Lian Ping, chief economist at Bank of Communications, told the Global Times Thursday that weakening competitiveness of export goods is behind the lackluster export data.

"The drop in exports reflects the growing pains involved in China's industrial upgrading process, which has undermined the competitiveness of China's processing trade," Lian said.

China faces increasing constraints on the use of resources as well as -environmental pressure, rising labor costs and growing competition from neighboring emerging economies, Lian noted.

China has the capabilities and confidence to keep its economy functioning within the proper range, Premier Li Keqiang said Thursday, noting that the country will not resort to short-term stimulus policies just because of temporary economic fluctuations.

"There is scope for the government to stay the policy course and not announce new easing measures in April, as it waits to see how the economy responds to the fiscal easing measures announced in recent weeks," Zhang Zhiwei, chief China economist at Nomura Securities, said in a research note e-mailed to the Global Times Thursday.

The State-led nature of China's economy endows the government with powerful levers for short-term demand management, which supports confidence in the prospects for a smooth adjustment, according to a statement e-mailed to the Global Times by Fitch Ratings on Wednesday.

Last week, the State Council rolled out mild stimulus measures, including increased investment in railway infrastructure, tax breaks for micro and small-sized companies and support for the renovation of run-down areas.